Back in 1999/2000 I got caught in the big tech bust and was out of work for over 2 years and during part of that time I was living off of my credit cards and paying the minimum payments with my meager unemployment checks. Then things got even worse and I actually ended up being homeless for about a year. Luckily with the help of some friends I was able to slowly get back on my feet and am finally back in a position with a decent job, pay, and place to live. Now there are all these bad reports on my credit file from those unpaid credit cards. However as it has been quite a while most of them are due to be removed within another year. So my question is should I just wait until they are removed from my credit file or should I try to contact them and start paying it back now anyway? And if if the recommended option is to try to start paying it back should I put all my extra income into that or should I continue to divert some of it into my 401k? I mean Id like to have something to retire on when I do and Im already 37 so Im several years behind getting started on that process as well. Some good advice would be much appreciated - thank you!
In short, let them go or attempt to dispute them through the credit reporting agencies. Paying them now would only hurt your scores and there is no reason to do so unless you have unsatified judgments. Honestly, you're probably better just letting them age off than to mess with it. They could up the date of status to the date verified and hurt your scores. However, if you have debt purchasers on your reports or simple debt collectors that have re-aged the date of last activity/status, you should address that.
Agree with Apex - let them go, just wait until they fall off.You're already past the SOL, so no one will try to come after you for payment.
Thanks for the advice - I guess I'll let them sit there until they are (hopefully) removed over the course of the next year.
